Rental Properties, Net

6 Months Ended

Jun. 30, 2020

NOTE 5 - RENTAL PROPERTIES, NET

The following table presents the Company's investment in rental properties (in thousands):

	June 30, 2020			December 31, 2019
Land	$	29,800		$	31,220
Building and improvements		172,007			171,265
Furniture, fixtures, and equipment		4,622			4,014
Construction in progress		60			1,205
		206,489			207,704
Less: accumulated depreciation		(15,412	)		(11,221	)
Total rental property, net	$	191,077		$	196,483

Depreciation expense for the three and six months ended June 30, 2020 was $2.2 million and $4.4 million respectively. Depreciation expense for the three and six months ended June 30, 2019 was $1.7 million and $3.3 million, respectively.

Loss on disposal of assets: During the three and six months ended June 30, 2020, the Company recorded losses on the disposal of assets of approximately $73,000 and $202,000, respectively. During the three and six months ended June 30, 2019, the Company recorded losses on the disposal of assets of approximately $131,000 and $218,000, respectively. The Company’s losses on disposals were primarily due to the replacement of appliances at its rental properties in conjunction with unit upgrades.

Resource Apartment REIT III, Inc. 10-Q